Distribution Solutions Group has agreed to be acquired by affiliates of LKCM Headwater Investments for $35.00 per share in cash. LKCM Headwater and its affiliates currently own approximately 79% of DSG's outstanding common stock, and a newly formed entity controlled by LKCM Headwater will buy all remaining shares it does not already own. The $35.00 per share price is $5.50 higher than LKCM Headwater's initial non-binding proposal of $29.50 made on March 14, and represents an 81% premium to DSG's closing price of $19.31 on March 13, the last trading day before the proposal was disclosed. Upon completion, DSG will be privately held and 100% owned by LKCM Headwater and its affiliates, and its shares will be delisted from Nasdaq. The deal is not subject to a financing condition, and DSG amended its credit facility with JPMorgan Chase Bank to permit the use of revolving loan proceeds to fund the transaction.
Distribution Solutions Group IncAgreed to be acquired at $35/share, an 81% premium to pre-announcement price.
JPMorgan Chase & CoAs the acquirer, LKCM Headwater will take DSG private at $35/share, consolidating its majority stake.